Use the following Resources to help in planning your yearly taxes.
Standard Deductions
| Married Filing Joint/Surviving Spouse | $11,400 |
| Single | $5,700 |
| Head of Household | $8,350 |
| Married Filing Separately | $5,700 |
| Additional Aged/Blind – Married | $1,100 |
| Additional Aged/Blind – Unmarried | $1,400 |
| Taxpayer Claimed as Dependent | $950 |
Personal Exemption Phase-Out
The personal exemption amount in 2009 is $3,650. The exemption amount for taxpayers with adjusted gross income in excess of the maximum phase-out amount is $2,433.
| Filing Status | Phaseout Begins When AGI Exceeds | Phaseout Complete When AGI Exceeds |
| Married Filing Joint/ Surviving Spouse | $250,200 | $372,700 |
| Single | $166,800 | $289,300 |
| Head of Household | $208,500 | $331,000 |
| Married Filing Separately | $125,100 | $186,350
|
2009 Social Security Changes
Maximum Taxable Earnings
| Social Security Wage Base (OASDI) | $106,800 |
| Medicare Portion (HI) | No Limit |
Social Security Tax Rates
| Tax Rate | Employee Rate |
| Employee | 7.65%* |
| Self Employed | 15.30% |
*The combined rate for Social Security (OASDI 6.2%) and Medicare (HI 1.45%)
At A Glance: Key Numbers For 2009
| Plan Contribution Limits | 2009 |
Defined Benefit Limit
| $195,000** |
Defined Contribution Limit
| $49,000*** |
Maximum Compensation Limits
| $245,000 |
| Section 401(k) Plan | $16,500 |
| Section 403(b) Plan | $16,500 |
| Catch Up Provision 401(k) and 403(b) | $5,500 |
Section 457(b)(2) Limit
| $16,500 |
Section 457(b)(2) Catch Up Provision
| $5,500
|
| Highly Compensated Employee Definitional Limits | $110,000
|
SIMPLE IRAs and SIMPLE 401(k) Plans
| $11,500
|
SIMPLE Plan Catch Up Provision
| $2,500
|
| Traditional IRA and Roth IRA | $5,000 |
| Traditional IRA and Roth IRA Catch Up | $1,000
|
**For defined benefit plans in 2009, the maximum benefit at age 65 under IRC Sec. 415(b) cannot exceed the lesser of (1) $195,000 or (2) 100% of the participant's average compensation for his high three years of active participation.
***The annual limitation applicable to defined contributions plans for 2009 is the lesser of (1) $49,000, or (2) 100% of the participants annual compensation.
| Long Term Care Premiums |
| Age 40 or less | $320 |
| Over 40 but less than equal to 50 | $600 |
| Greater than 50 but less than or equal to 60 | $1,190 |
| Greater than 60 but less than or equal to 70 | $3,180 |
| Greater than 70 | $3,980
|
| Social Security |
|
| Social Security Wage Base | $106,800 |
| Social Security Tax Rate Employee | 7.65% |
| Social Security Tax Rate Self Employed | 15.30%
|
| Transfer Tax |
| Annual Exclusion | $13,000 |
| Unified Credit Gift Tax | $345,800/$1,000,000 |
| Unified Credit Estate Tax | $1,455,800/$3,500,000 |
| Generation Skipping Exemption | $3,500,000 |
| Highest Estate Tax Bracket | 45%
|
Tax Rate Tables for 2009
Married Filing Joint/Surviving Spouse
| If Taxable Income Is | The Tax Is |
| Not Over $16,700 | 10% of the taxable income |
| Over $16,700 but not over $67,900 | $1,670 plus 15% of excess over $16,700 |
| Over $67,900 but not over $137,050 | $9,350 plus 25% of the excess over $67,900 |
| Over $137,050 but not over $208,850 | $26,637.50 plus 28% of the excess over $137,050 |
| Over $208,850 but not over $372,950 | $46,741.50 plus 33% of the excess over $208,850 |
| Over $372,950 | $100,894.50 plus 35% of the excess over $372,950
|
Head of Household
| If Taxable Income Is | The Tax Is |
| Not Over $11,950 | 10% of the taxable income |
| Over $11,950 but not over $45,500 | $1,195 plus 15% of excess over $11,950 |
| Over $45,500 but not over $117,450 | $6,227.50 plus 25% of the excess over $45,500 |
| Over $117,450 but not over $190,200 | $24,215 plus 28% of the excess over $117,450 |
| Over $190,200 but not over $372,950 | $44,585 plus 33% of the excess over $190,200 |
| Over $372,950 | $104,892.50 plus 35% of the excess over $372,950
|
Single
| If Taxable Income Is | The Tax Is |
| Not over $8,350 | 10% of the taxable income |
| Over $8,350 but not over $33,950 | $835 plus 15% of the excess over $8,350 |
| Over $33,950 but not over $82,250 | $4,675 plus 25% of the excess over $33,950 |
| Over $82,250 but not over $171,550 | $16,750 plus 28% of the excess over $82,250 |
| Over $171,550 but not over $372,950 | $41,754 plus 33% of the excess over $171,550 |
| Over $372,950 | $108,216 plus 35% of the excess over $372,950
|
Married Filing Separate Returns
| If Taxable Income Is | The Tax Is |
| Not Over $8,350 | 10% of the taxable income |
| Over $8,350 but not over $33,950 | $835 plus 15% of the excess over $8,350 |
| Over $33,950 but not over $68,525 | $4,675 plus 25% of the excess over $33,950 |
| Over $68,525 but not over $104,425 | $13,318.75 plus 28% of the excess over $68,525 |
| Over $104,425 but not over $186,475 | $23,370.75 plus 33% of the excess over $104,425 |
| Over $186,475 | $50,447.25 plus 35% of the excess over $186,475 |
Estates and Trusts
| If Taxable Income Is | The Tax Is |
| Not Over $2,300 | 15% of the taxable income |
| Over $2,300 but not over $5,350 | $345 plus 25% of the excess over $2,300 |
| Over $5,350 but not over $8,200 | $1,107.50 plus 28% of the excess of $5,350 |
| Over $8,200 but not over $11,150 | $1,905.50 plus 33% of the excess of $8,200 |
| Over $11,150 | $2,879 plus 35% of the excess over $11,150
|
Additional Resources
The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel.
Insurance products issued by Massachusetts Mutual Life Insurance Company (MassMutual), 1295 State Street, Springfield, MA 01111-0001 and CM Life Insurance Company and MML Bay State Life Insurance Company, 100 Bright Meadow Boulevard, Enfield, CT 06082.
Principal Underwriters: MML Distributors, LLC. (MMLD) and MML Investors Services, Inc., (MMLISI) Members FINRA (www.finra.org) and SiPC (www.sipc.org). MMLD and MMLISI are subsidiaries of Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, MA 01111-0001.
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